131.56 +1.18 (+0.9%) Buy

FRT investors make good profits

13 min read

FEDERAL REALTY INVESTMENT TRUST was among the best performers today. It returned +0.9% to close at 131.56. During the last week it returned -1.84% and saw a maximum drawdown of -2.71% before bouncing back.

[Themes containing FRT]

Buy-and-Hold investors in FRT experienced a maximum drawdown of -9.32% over the last three months. It returned +1.5% during this up trending period. There were both Long and Short signals during this period, while the long signals were marginally more profitable than the short signals.


FRT has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 9 days, FRT underperformed the SP500 index on 49% days. Which indicates that on days FRT underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months FRT was mostly profitable and delivered on average +0.03% per day. It's best return during this period (of +3.26%) was on Thursday, 6 Dec, 2018. While it's worst loss in the same period (of -2.35%) was on Monday, 22 Oct, 2018. There was initially a bearish trend during this period which started on 9 Oct, 2018 and went on till 12 Oct, 2018. The trend delivered -5.36% losses to investors. This was followed by a bullish trend that started on 5 Nov, 2018 and ended on 9 Nov, 2018. This bullish trend delivered +4.72% to investors.

On monthly basis, FRT delivered profits in more months over the last year, than losses. FRT delivered profits less regularly than SP500 index. FRT was also a more risky investment than SP500 index as it's worst month in the last year, Jan 2018, returned -9.68% compared to -7.28% returned by SP500 index in Oct 2018. FRT and SP500 index, both had periods of 6 consecutive profitable months.

"Wide diversification is only required when investors do not understand what they are doing.

FRT is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant fall in FRT's volatility from 5 Nov, 2018 to 27 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that FRT has significant positive skewness in it's return distribution. This indicates that investors can expect FRT to recover from drawdowns quickly. Which makes FRT a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

FRT has more chance of extreme outcomes than the SP500 index. Therefore, FRT must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than FRT.

Based on your interest in FRT you may find it interesting to know that CSCO and AMZN are both large caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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